Partition magic only works on ext2 and linux swap file systems, not on ext3 or reiserfs, so as long as your not using one of those two you will be able to resize and create new partitions without formatting. For splitting up linux you'll need to create a partition for each one you want to live in a seperate location, going by your post you'll need to create five partitions (one each for /, /home, /usr and /usr/local) plus a linux swap partition.
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